Saturday, June 8, 2013

David Michaels - Securities Scumbag in BCSC Spades

Anybody who has been around for any length of time knows all too well about the massive and jawdropping systemic problems inherent with the BCSC.

Nothing, in the world, better exemplifies this corrupt and near useless bureacratic offense against the public than this truly sickening example. Read on.
"The devastation caused by Victoria financial adviser David Michaels never had to happen. The B.C. Securities Commission could, and should, have averted this whole thing years ago. As we reported in a front-page story Friday, BCSC enforcement staff have cited Michaels for selling $65 million worth of flaky "exempt-market" securities to 484 clients, all of which have collapsed and are now worthless.

And that's not the entire amount. BCSC officials could only go back six years, which is the limitation period for such enforcement actions. The callous nature of Michaels' activities is shocking. In one instance, he sold $550,000 worth of highly risky and illiquid securities to a woman in her late 80s.
According to the notice, Michaels collected nearly $5.8 million in commissions and marketing fees from the issuing companies during the period cited by the commission.

For investors, the investments were disastrous: “Almost all of the roughly $65 million invested by Michaels’ clients is now worthless, leaving many of them destitute while their home-equity loans remain,” the notice alleges.

"In June 2010, I reported what Michaels was doing, but BCSC officials did nothing. According to the notice of hearing, he continued to sell these products for at least another six months. The bottom line is that commission officials not only created the environment for these sorts of predatory practices, they dragged their heels when it became obvious what Michaels was doing."

Completely amazing is what this horrid example is, and for MANY reasons. Mr. Baines laid out this offense in excruiating detail years ago and even with that massive public sword the BCSC could not be moved off its fully incompetent nail one iota. As a direct result people got taken by a scumbag for multi-millions and if anything its the BCSC that should be held accountable.

As one who has similarly laid out an insulting securities offense in extreme detail to the BCSC with no fukkin response whatever, I share Mr. Baines decades long frustration with the BCSC and the grossly overpaid "people" running it. Whereas a career connected Vancouver type like Mr. Donald Gordon can easily motivate the BCSC to blow 100k investigating a ridiculous $ 5k in insider trades (ABA.v and Mr. John Good) anybody else will be out of luck irregardless if the complaint relates to millions and is spelled out so that a retarded child could understand it.

It amazes, truly. Top two dogs at the BCSC pull down over $ 1m and thats before expenses. How can the wolves ever protect the sheep? They can't and the BCSC should have been overhauled 20 years ago. If it had utter scum like Mr. Michaels wouldn't have been soooooo sickeningly successful.